In the analysis of single stock returns, the authors in ([1]}) utilized a pair of thresholds to mark absolutely large stock returns as 1 and 0 otherwise, then revealed the volatility pattern behind the resultant 0-1 sequence. The encoding process is written as
\(E_t = {\left\lbrace \begin{array}{ll} 1 & \quad X_t\le \alpha , \,\, X_t\ge \beta \\0 & \quad Otherwise \end{array}\right.}\) 
